Lucy Scientific makes bid to buy Pasithea for $0.85 in cash and stock

Lucy Scientific Discovery (NASDAQ:LSDI), a producer of medicinal psychedelic compounds, has made a bid to acquire Pasithea Therapeutics (NASDAQ:KTTA) for $0.85 per share in cash and stock.

Under the deal, Lucy would pay $0.60 in cash and $0.25 in Lucy stock for each common share of Pasithea. The offer represents a 142% premium over Pasithea's closing price of $0.35 per share on June 1, Lucy said.

Lucy said Pasithea currently has $30M in cash on hand according to its most recent quarterly report. Lucy added that it would seek out strategic alternatives for Pasithea's clinical development business if the merger is consummated.

"Given the significant market value discount to its net cash, Lucy believes its attractive offer will create immediate value from the cash portion with additional upside participation through Lucy’s stock as it executes its business plan," Lucy said in a statement.

Lucy said that it is prepared to present its offer directly to Pasithea shareholders if the company's board does not endorse the proposal.

Based in Canada but incorporated in the US, Lucy aims to be a developer and manufacturer of ingredients for the emerging psychotropic drug industry. The company has been approved in Canada to produce several psychotropic compounds including LSD, MDMA and psilocybin.

Lucy went public in February through a downsized initial public offering that raised $7.5M.

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